What to Do When Customers Say Your Price is Too High [Examples]
You put in the work to set your prices, completed an on-site assessment, and created a fair quote that reflects the true value of your services. And despite expecting an approval to move the job forward, your customer has a pricing objection.
It happens to just about every service provider, but that doesn’t make it any easier to navigate.
Use the objection handling strategies in this guide to overcome common objections and get the job back on track.
Overcoming objections professionally:
Common customer pricing objections
Before truly addressing and overcoming price objections, you’ll need to understand where it’s coming from. Customers usually say your price is too high because:
- Budget constraints. If a customer doesn’t have the funds to pay for a service, they may expect to negotiate your fee based on what they can afford.
- They’re not committed. Not all clients reach out ready to move forward. Some simply want a quote to start pricing out a potential project or to see if they can get a better deal elsewhere.
- They don’t see the value compared to the cost. They may be convinced they can do the work themselves, or that the cost of hiring you outweighs the perceived value of the service.
- They’re too polite to say “no” outright. If you’re approaching customers who haven’t reached out to you first, like in door-to-door sales, they may not be interested in your services at all, but too polite to say so. Instead, they might use a price objection as an excuse, though it wouldn’t matter how much you charged.
- They’re not convinced about the effectiveness of the service. If you haven’t educated potential customers enough about the value proposition of your services, they may not see the point in paying for them.
- They don’t understand the price point. Customers unfamiliar with your industry or service may not know what typical costs are, so experience sticker shock. This is why creating itemized quotes is essential since it helps them to understand individual costs that make up the total.
Strategies for handling price objections
How you overcome price objections depends on the prospective client and their reason for pushing back on your quote. Based on the situation, use these price objection strategies to find one that matches the client’s concern.
1. Break down the costs
Using detailed quotes to clearly break down each product or service and its cost helps clients see what they’ll be paying for. That way, it’s easier to understand the value of each line item and consider where or how they could cut costs.
For example, they may think the price is too high simply because they don’t realize the premium flooring they chose was so expensive.
It’s a lot easier to digest a grand total when you can see how it’s calculated. Using Jobber, you can make itemized quotes that include separate costs, images, tiered packages, and optional upsells, giving your clients more control over what they spend.
This helps overcome price objections by providing clients with a breakdown and multiple pricing options.
2. Show your worth to overcome price objections
Customers who don’t understand the value you bring to the table are more likely to balk at your prices. By showing them the benefits and positive outcomes your service can offer, they’re more inclined to approve your quotes.
Some of the best ways to do this are:
- By collecting testimonials and case studies from happy customers
- Taking before and after images of your work
- Asking for reviews
When you encounter a client who’s hesitant to move forward because of the higher price, use these materials to show them what they can expect from you. Sometimes, all it takes is proof that other customers are happy with your work to convince them to go ahead.
Pro Tip: To ensure you ask every satisfied customer for a review, set up automatic review collection in Jobber. Jobber automatically sends a text to the customers you want reviews from.
3. Offer different pricing options
When possible, offer your clients good, better, best pricing or packages. This gives them a chance to choose the option that works best for their budget instead of trying to negotiate a lower price based on a single number.
It also puts customers in the driver’s seat when it comes to spend, making them feel like they have more control over the budget.
4. Provide flexible payment options
Don’t make assumptions about what a client can or can’t afford.
As business coach and host of the Contractor Fight podcast, Tom Reber says, “A lot to me is probably different than a lot to somebody else.”
Offering flexible payment options helps customers with tight budgets get the services they need without breaking the bank.
For example, offering financing gives clients the option to take advantage of a payment plan while you get paid in full upfront.
But if financing isn’t an option, you can always expand how you accept payments to make it easier for clients to pay you.
For example, if you only take payments via cash or check, some customers will find it hard to commit to the cost of a job because they don’t use those payment methods. But if you let clients use credit cards, they may have more wiggle room in their budget.
5. Take advantage of warranties and guarantees
Clients may have an objection to your pricing because they’re worried that, at the end of the job, they’ll be left with a big bill and nothing to show for it.
Warranties and guarantees assure clients that if the job doesn’t go as planned, you’ll do what you can to make it right.
For example, say you’re quoting a client on a fence installation, and they’re concerned about whether it’ll hold up long-term. Offering a five-year warranty that covers things like warped boards and loose posts can be all it takes to win them over.
And the same goes for guarantees. If you’re a lawn care provider and a client isn’t sure whether your weed removal services are going to work, let them know you have a customer satisfaction guarantee. That way, they feel like they’ll be taken care of either way, ensuring their hard-earned money won’t go to waste if the treatment doesn’t take.
6. Pay attention to client concerns
When a potential client has a budget objection, pay attention to the reason behind it. Is it because they don’t have the budget? Or is it because they aren’t educated enough about your service?
Whatever it is, use their objection to inform how you move forward. It could be as simple as offering a different package or having a price discussion to educate them about your services.
Listening to their concerns and addressing them specifically helps to build trust and positions you as an expert, strengthening your relationship and giving them the confidence to approve your quote.
7. Find out what the client’s budget is
If the client says your price is too high, ask them what’s within their budget. While they may not want to give you an exact number, a ballpark will help to evaluate whether you can accommodate their needs.
For example, if you install countertops and a client objects to your quote, finding out what their budget is can help you find alternatives in their price range. Like suggesting they go with laminate instead of quartz or granite.
It also gives you a chance to understand whether you can work with the client at all. If they have budget issues or they have unreasonable expectations about materials costs, it may be best for you to part ways instead.
8. Know when to let go
Sometimes, there’s nothing you can do to sway a client, and it’s important not to waste your time trying if they’re digging their heels in.
If a potential customer doesn’t seem willing to work with you, either by discussing different pricing options or providing details, it’ll be better, in the long run, to move on, especially if you’ve already tried out your best strategies with no success.
What to say when a customer says your price is too high
When a customer objects to your price, it’s easy for the conversation to get derailed.
To keep these discussions on track, use the following responses to prepare for different price objections so you aren’t caught off guard.
When you aren’t planning to adjust the price
Not all price objections warrant a price adjustment. Sometimes, all the customer needs is a little education about what you offer and the value you provide.
If you aren’t ready to lower the price, and you don’t have other packages or options to offer, use the following responses to help bring the customer around.
1. Ask if they’ve paid for this service before
The answer to this question will tell you whether your customer knows what this service should cost, or if they’re inexperienced and just don’t know. This can help clear up any confusion they might have and give you the chance to educate them on your price points.
2. Ask them what it will cost if they don’t get this service
Get your customer thinking about the big picture with this question. If they wait to address their problem or shop around for too long, what are the consequences? How bad will doing nothing be? This will also put you in a better spot to show your value.
3. Ask what they’re comparing your high prices to
Depending on your customer’s experience with the service, their understanding of “high” or “expensive” will vary. This question will get them to reconsider their stance. Their response will show you if they think you’re expensive compared to the competition, or if you’re expensive compared to what it would cost to do the job on their own.
FREE TOOL: Try our free service price calculator
4. Explain your value
If you haven’t been crystal clear about your value initially this is the ideal response. It’s another opportunity to sell your business and remind your customer that you don’t price thoughtlessly—explain the reasons why you price the way you do.
5. Tell them your prices match the quality of our service
Let your customer know that while you know you aren’t the cheapest on the market, your prices are worth it. Your prices are based on the quality of your work and the high level of customer service you provide.
6. Use examples of similar customers
Show your customer that you understand their hesitation because you’ve experienced the same situation with another customer before. Make sure that you have a positive result to show. A real-life example shows you’re experienced, and hearing about another customer can help ease some of their concerns.
When you have some wiggle room in your pricing
If you have a little room to adjust your price, find out how much the customer needs to sign a contract by:
1. Finding out whether the issue is related to budget or cash flow
If the customer doesn’t have the budget, you can offer a discount or different service option. On the other hand, if the issue is cash flow, offering financing options, breaking up the job into multiple appointments, or accepting credit card payments may be the most helpful.
READ MORE: Key business metrics to plan for growth and success
2. Figure out how much they want to spend
If your customer wants a price discount, find out what their limit is. If it’s unreasonable, you can either counter or walk away. But if it’s doable, you can either make it work or negotiate until you reach a number you’re both happy with.
When the customer isn’t a fit
If the customer has unreasonable expectations, or you just aren’t a fit for what they’re looking for, the best option is to move on.
If that’s the case, use these responses to say no to customers in a professional and polite way.
1. Thank them for considering your company
The easiest way to make it clear that you aren’t interested in moving forward is by saying:
“I understand. Thanks for considering our company and best of luck with your project!”
It’s simple, straightforward, and works best if you don’t foresee working with the customer anytime down the road.
2. Encourage them to reach out in the future
If you think there’s a chance you could work together again on a different project someday, respond with something like:
“Thank you for your feedback. We wish you all the best with your project! Please feel free to reach out if we can help you in the future.”
3. Leave the door open
If you suspect a customer is only objecting to your pricing because they aren’t ready to commit, or because they want to get a few more quotes before moving forward, leave the door open by saying:
“Thanks for letting me know. Your estimate is valid for X more days if you change your mind.”
This response brings the conversation to a close, but gives the customer the option to start it up again if they decide they want to move forward.
Learn from the home service pros
Get winning sales scripts from Dominic Rubino on this episode of the Masters of Home Service podcast.
Best practices to help you reduce price objection discussions
When customers complain about pricing, it can make for an uncomfortable conversation. A good process for discussing price objections looks like this:
- Listen to the customer. Don’t interrupt or interject. Let the client explain what’s preventing them from moving forward so that you can find out what their roadblocks are and how you can overcome them.
- Take a minute to consider their concerns. Think about what their complaint is and how you could resolve it. For example, is the job worth winning, or are you better or going your separate ways?
- Summarize their concern and repeat it back. This ensures you’re on the same page and understand exactly the client’s issue. It also encourages the customer to reflect on their concern and what’s really preventing them from signing a contract with you.
- Ask follow-up questions. Use this opportunity to find out everything you need to know about the situation before making a decision.
- Make the call. At this point, you should have enough information to decide how to proceed. For example, do you have other options to offer them? Should you try to change their perceived value of your services, or is it time to let them go?
Preventing price objections
Overcoming price objections is one thing, but preventing them from happening in the first place is even better.
Keep customers from saying your prices are too high by:
- Carefully considering your service pricing and understanding your industry, services, value, and competitors when setting prices.
- Collecting reviews, testimonials, and before and after pictures to demonstrate the value you bring to your clients.
- Offering different pricing options and packages to serve more clients.
- Understanding client needs upfront so you can create an accurate and relevant estimate.
- Using software like Jobber to provide clear, detailed quotes that identify each product and service as well as its cost.
By staying ahead of price objections before they become a problem, you and your sales teams will have a better chance at winning more jobs and growing your business.
Originally published in July 2021. Last updated on September 24, 2024.